Tax planning promoters to spill beans on clients

Since the creation of the new High Net Worth Unit in 2009-10, an extra £85 million in further taxes has been clawed back by HMRC . . .

The new team replaced the Complex Personal Returns (CPR) team and has been three times more successful than its predecessor who previously only managed to rake in an additional £25 million in additional taxes.

Thanks to figures released under the Freedom of Information Act, the pioneering High Net Worth Unit is proving to be on the frontline of the Government’s continued fight against tax avoidance and tax evasion amongst wealthy taxpayers.

The taxman has been working diligently to close down legal loopholes and tax avoidance schemes favoured by those high worth individuals in recent years meaning that schemes that could be seen as legal tax planning one year could be illegal the next.

Due to the fact that promoters of tax avoidance schemes have been forced to disclose details of such schemes to HMRC since 2004, it has been easier for HMRC to challenge the schemes and work at shutting them down.

HMRC have never been able to force the tax avoidance scheme promoters to disclose details of their clients however; that is until now.

Since 31st March 2011, tax avoidance scheme promoters have just 30 days to provide the taxman with the names and addresses of their clients giving HMRC the breakthrough they have been looking for.

Once HMRC have the personal details of those taking advantage of tax avoidance schemes, they will be able to scrutinise their tax affairs more closely.

Over the past few months HMRC have been working tirelessly at trying to close down stamp duty tax avoidance schemes aimed at taxpayers who are in the market for high value properties.

Stamp duty tax avoidance schemes benefit from the differences between the 50% income tax rate and the capital gains rate by converting income into gains in order to avoid the top income tax rate.

It is essential that anyone using a tax planning schemes is aware of the implications involved, especially now that HMRC will have access to their details.

If you are caught up in this mess, or think you will be, and want to speak to someone confidentially then ring KinsellaTax today on 0800 471 4546.

Tax avoidanceis a complex issue so for more information please click here

Don’t risk being caught out. If you have any doubts at all contact KinsellaTax immediately on 0800 471 4546 or click here to fill in a tax enquiry form.